Insurer is faulted over service fee
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from times wire reports
A California appeals court says Farmers Insurance Co. broke the law by failing to disclose a $5 service charge -- but the company won’t have to pay back the more than $115 million it collected.
The 4th District Court of Appeals in Santa Ana ruled that Farmers had violated a state code by failing to disclose the $5 it adds to monthly premiums to cover billing costs. The fee isn’t charged to customers who pay the premium in a lump sum.
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